The South Korea-Philippines Free Trade Agreement (FTA) is set to officially take effect on December 31, as announced by the Korean Embassy in Manila on Monday. This milestone, occurring a year ahead of schedule, heralds a new century of partnership between the two nations.
In a statement, the embassy highlighted the FTA’s potential to unlock significant opportunities for both countries. By fostering deeper trade and investment ties across key sectors such as industry, agriculture, infrastructure, and energy, the agreement is poised to pave the way for substantial economic growth.
With a comprehensive scope covering 97 percent of imports, the deal will significantly enhance market access for Philippine products like bananas and pineapples in the Korean market. Additionally, South Korean companies are expected to contribute to the creation of quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy.
Beyond economic gains, the embassy emphasized that this FTA will catalyze shaping the future of both countries. It will foster collaboration in areas such as healthcare, carbon reduction, innovative technologies, and electric vehicles.
“The entry into force of the South Korea-Philippines FTA marks the dawn of a new era in our strategic partnership,” stated South Korean Ambassador to the Philippines Lee Sang-hwa. “The Korean government will actively collaborate with the Philippine government to ensure that the FTA realizes its maximum potential in strengthening economic ties and fostering deeper cooperation between our two nations.”
The FTA is envisioned to promote the Philippines as a strong market for smart and sustainable investments, ensuring major economic gains with enhanced market access to South Korea, and yielding strategic investments in priority sectors and industries.
This announcement coincides with the 75th anniversary of Philippine-South Korea ties and the strategic partnership declared by the two countries this October. Over the past 75 years, the two nations have forged close cooperation in various areas, including politics, economy, culture, and people-to-people exchanges.
“This momentous occasion marks a bold stride towards a new era of unparalleled cooperation between the two nations,” the embassy remarked.
The Philippine-South Korea FTA was signed on September 7, 2023, at the 43rd ASEAN Summit in Jakarta, Indonesia. Under the agreement, Korea will grant preferential duty-free entry on 11,164 Philippine products, accounting for US$3.18 billion or 87.4 percent of total Korean imports from the Philippines.
